Separate Property: What Belongs to One Spouse in Arizona

What Qualifies as Separate Property

Arizona is a community property state, which means most assets acquired during marriage belong equally to both spouses. But not everything falls into that bucket. This statute carves out a clear exception for three categories: property owned before the marriage, property acquired during the marriage by gift, and property received by inheritance (devise or descent).

The statute goes further. Income generated by separate property, such as rent from a home you owned before marriage or dividends from inherited investments, also remains separate. That distinction matters because it protects the growth of separate assets from being reclassified as community property.

When Property Acquired During Marriage Can Still Be Separate

There is a lesser-known provision in this statute that comes into play during divorce proceedings. Once a petition for dissolution of marriage, legal separation, or annulment has been served, property acquired by either spouse after that point is treated as separate property, as long as the petition results in a final decree.

The statute also addresses life insurance trusts. A contribution to an irrevocable trust that holds life insurance on the contributing spouse is treated as separate property if the other spouse is the primary beneficiary. This provision helps families use insurance planning tools without unintentionally converting separate assets into community property.

For estate planning purposes, the key takeaway is simple: knowing what is separate property and keeping it properly documented and segregated is essential to an accurate, enforceable estate plan.